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Citations: (R)653.60
AsOfDate: 12/31/98

Sec. 653.60 What requirements must a State Agency meet in the administration of this program?

(a) To receive payments under this program, an SA must--

(1) Comply with the criteria, procedures, and assurances in the State's approved grant application;

(2) Disburse scholarship funds in accordance with Sec. 653.51;

(3) Collect any scholarship funds improperly disbursed;

(4) Comply with all requests from the Secretary for reports or information necessary to carry out the Secretary's functions under
this part.

(5) Establish and implement policies and procedures that are necessary to administer the repayment provisions of Sec. 653.62
and, in cases of noncompliance with these provisions, implement collection and litigation procedures consistent with 34 CFR Part
682; and

(6) Except as provided in paragraph (b) of this section, expend in each award year all--

(i) Scholarship funds received from the Secretary for that award year; and

(ii) Funds received prior to that award year for principal and interest payments collected under the provisions of Sec. 653.62.

(b) After awarding all scholarships for payment during an award year, as required by paragraph (a)(6) of this section, an SA may
reserve for expenditure in the following award year any remaining amount of funds that is less than the amount required for a
scholarship, as well as any funds that were awarded but were returned or not expended.

(Authority: 20 U.S.C. 1104b, 1104f, 1104i)